BRUSSELS, June 27 (RIA Novosti) – The South Stream gas pipeline may dissatisfy Western partners seeking to gain control over Ukraine’s gas transit network, Russia's ambassador to the EU, Vladimir Chizhov, told RIA Novosti in an interview Friday.
“I understand the motives of those who want to buy the Ukrainian gas transit network and also those in Kiev who are calculating how much it can be sold for. Of course, they do not need gas-supply route diversification and the possibility of bypassing Ukraine for supplying Russian gas to Europe,” Chizhov said.
Investors from Europe and the powerful EU executive branch, the European Commission, have shown interest in forming a new operator for the Ukrainian gas transit network, the CEO of Ukraine’s gas monopoly Naftogaz, Andriy Kobolev said Monday.
Earlier in June, the country’s Cabinet of Ministers presented a draft law to the parliament that would allow the government to create a gas transit network operator, with 49 percent owned by US and EU investors. The draft law provides the operator with management and/or concession or rent rights for the country’s major pipelines and underground storage units.
In answer to a question on whether Europe is using South Stream negotiations as leverage on Moscow at three-party gas talks between Russia, Ukraine and the European Commission, Chizhov said: “Yes, we can describe the situation like this. Although, I think it’s not about this but the fate of Ukraine as a gas-transit country to the EU.”
Chizhov said if the EU manages to reduce gas consumption and South Stream is built, the Ukrainian gas transit network would become meaningless. Unbiased politicians say building the pipeline supports the interests of EU energy security, as it diversifies gas supply routes.
“I believe this probably does not meet the interests of those who want to get ahold of the Ukrainian gas transit network and earn money based on its semi-monopoly position in gas supplies to EU countries,” Chizhov said.
The South Stream pipeline is to carry Russian natural gas to export destinations in southern Europe across the Black Sea, bypassing Ukraine. Construction started in 2012 as a move to diversify export routes for Russian gas.
The European Commission believes Russia’s bilateral agreements with the European transit countries for the new pipeline, namely Austria, Bulgaria, Hungary and Slovenia, violate EU legislation, particularly the so-called Third Energy Package. Regulations in the package stipulate that companies involved in gas production cannot be the owners of long-distance pipelines in the region.
